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Accidental drug war: Medicare benefits that bankrupt.


"DRUG COVERAGE under Medicare will save our seniors from a lot of worry," President Bush proclaimed in November 2003, just before signing the drug benefit into law. As younger generations worry about how to pay for $30 trillion in unfunded Medicare obligations during the next 75 years, it would be nice to think at least one demographic could rest easy. But drug makers say the bipartisan drive for public largesse lar·gess also lar·gesse  
n.
1.
a. Liberality in bestowing gifts, especially in a lofty or condescending manner.

b. Money or gifts bestowed.

2. Generosity of spirit or attitude.
 is forcing them to end charitable patient assistance programs, leaving even seniors worse off.

In January drug maker GlaxoSmithKline announced on its Web site that "any patient who is Medicare-eligible" in otherwords, 65 or older--would be dropped from its "Bridges to Access" program, which offers free and discounted drugs to low-income seniors. "We are disappointed by the guidance of the Office of the Inspector General Office of the Inspector General (or OIG) is a common sub-agency within cabinet-level agencies of the United States federal government and serves as auditing and investigative arm of the agency's programs focused on identifying waste, fraud and abuse. ," the letter sighed, explaining that the company had been advised to cut off Medicare beneficiaries lest it run afoul of a·foul of  
prep.
1. In or into collision, entanglement, or conflict with.

2. Up against; in trouble with: ran afoul of the law. 
 fraud and anti-kickback laws. Citing the same issue, TAP Pharmaceuticals announced that it would drop beneficiaries from a similar program in March.

A November bulletin from the Department of Health and Human Services Noun 1. Department of Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979
Health and Human Services, HHS
 (HHS HHS Department of Health and Human Services. ) acknowledged that these programs have "long provided important safety net assistance to patients of limited means" and worried that there might not be enough independent charities to help poor seniors afford premiums when the drug benefit started. Yet it advised pharmaceutical companies to stop offering aid to anyone enrolled in the program.

The new Medicare benefit is widely acknowledged to be one hole-ridden safety net, and very poor seniors will still not be able to afford medications without charity. The HHS memo pointed out that companies eager to help seniors can avoid legal snafus by donating cash and drugs to independent organizations. But neither TAP nor GlaxoSmithKline has announced plans to ramp up Ramp Up

To increase a company's operations in anticipation of increased demand.

Notes:
A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product.
See also: Demand, Economies of Scale
 third-party donations. A possible explanation: Company-sponsored programs help businesses boost their reputations. Handing out free reeds to charities, where the drug maker can't trumpet its munificence mu·nif·i·cent  
adj.
1. Very liberal in giving; generous.

2. Showing great generosity: a munificent gift. See Synonyms at liberal.
 throughout the distribution process, has less appeal.
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Title Annotation:Citings
Author:Howley, Kerry
Publication:Reason
Geographic Code:1USA
Date:May 1, 2006
Words:335
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